Oxley notes disappointment in opposition to FHLB provision in reg relief

WASHINGTON-Financial Services Committee Chairman Mike Oxley (R-Ohio) expressed disappointment in the opposition to a provision in the regulatory relief legislation that would allow privately insured credit unions to join the Federal Home Loan Bank System. He and Congressman Bob Ney (R-Ohio) had earlier introduced this section as a stand-alone bill. NAFCU joined the bankers in disapproving the provision. "I think that the Ney-Oxley legislation would help a small number of privately-insured credit unions by allowing them to apply to become a member of a Federal Home Loan Bank, and as the state credit union supervisors testified at our last hearing, it would present no safety and soundness risk," Oxley said in his opening statement for the Financial Institutions Subcommittee hearing yesterday. "It is fully consistent with current federal law, for example, most credit unions and even insurance companies can already become Home Loan Bank members. It is a common sense provision and I am pleased it is a part of this important legislation."